Which of the following statements about non-qualified employer-sponsored retirement plans is false?
Answer(s): B
The false statement is that the earnings on the plan's contributions remain untaxed until they are withdrawn. Earnings on non-qualified employer-sponsored retirement plans do not grow tax-deferred except for a special situation in which a sizeable forfeiture risk exists. All the other statements are true since non-qualified employer-sponsored plans are exempt from most, if not all, of ERISA's requirements.
Connie Serve placed an order to purchase five, $1,000 Treasury bonds in the secondary market on Tuesday, October 12th.Connie will be required to pay for this purchase on which day?
Connie will be required to pay for this purchase on Wednesday, October 13th. The settlement date for Treasury securities and exchange-listed options is one business day after the trade date, or T + 1.
Ken has a variable life policy and recently learned that he can borrow against its cash value to help pay for some of the expenses he's incurring while pursuing a graduate degree.Which of the following statements about the loan he can get is true?
Answer(s): C
The true statement is that Ken never has to repay the loan, but if he chooses not to do so, his wife, Barbie, won't get as much when he dies. He can borrow up to at least 75% of the cash value, but there is interest charged on the loan. (In essence, he's paying interest to himself, though.)
The compensation records that FINRA member firms are required to maintain must include which of the following?I). the names of the persons that have provided the compensationII). names of the associated persons receiving the compensationIII). the amount of cash receivedIV). the nature and value (if known) of any non-cash compensation received
Answer(s): D
The compensation records that FINRA member firms are required to maintain must include the names of the persons that have provided the compensation (the offerors), the names of the associated persons receiving the compensation, the amount of cash received, and the nature and value (if know) of any non-cash compensation received.
Mandatory guidelines for the prospectuses of which of the following are dictated by the Investment Company Act of 1940?I). mutual fundsII). closed-end investment companiesIII). unit investment trustsIV). variable contracts
Mandatory guidelines for the prospectuses of all of the selections are dictated by the Investment Company Act of 1940.
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